Agenda of Council - 28 September 2016

Council

28 September 2016

sdclogo

Adoption of the Annual Report 2015/2016

Record No: R/16/9/14486

Author: Katherine McDonald, Corporate Planning and Performance Advisor

Approved by: Steve Ruru, Chief Executive

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 Adoption of the Annual Report is required under the Local Government Act 2002.

2 The Annual Report is a means for Council to account and report to the community on its performance of the preceding financial year. It reports on outcomes, performance measures, both financial and non-financial and provides the actual results against budgeted results. This Annual Report reports against the first year of the Council’s 10 Year Plan 2015-2025.

Executive Summary

3 Council staff have compiled the Annual Report for the financial year ended 30 June 2016. The report has been reviewed by members of the Executive Leadership Team. Additionally, a draft unaudited Annual Report was presented to a Council workshop on 7 September 2016 for consideration and comment. These comments have been noted and incorporated into the Annual Report.

4 Audit New Zealand staff were onsite at Council from 5-16 September 2016 and have completed the majority of their review of the Annual Report and the summary document.
As such these documents may be subject to change and any changes will be outlined at the meeting.

5 Audit New Zealand Director, Mr Ian Lothian is anticipating attending Council’s meeting on
28 September to present the audit opinion to Council.

6 As with previous years, both an Annual Report and an Annual Report summary document have been produced. The Annual Report and the Annual Report summary document will be available at Council offices and on the Council website. A printed copy is also distributed to those on the Council mailing list.

7 The summary document will be tabled and distributed at the meeting on 28 September 2016.

Recommendation

That the Council:

a) Receives the report titled “Adoption of the Annual Report 2015/2016” dated
21 September 2016.

b) Determines that this matter or decision be recognised as significant in terms of Section 76 of the Local Government Act 2002.

c) Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

d) Adopts the Annual Report and Annual Report Summary Document for the year ended 30 June 2016.

e) Delegates authority to the Chief Executive to approve any minor amendments needed to these documents subsequent to this meeting.

f) Delegates authority to the Chief Executive and Mayor to sign the letter of representation to Audit New Zealand on behalf of Council.

Content

Background

8 The Annual Report 2015/2016 is in five sections. A summary of each is provided below:

Section 1 - Overview

9 This contains the overview of the Annual Report and includes:

· A message from the Mayor and CE,

· A description of the Annual Report,

· A Shared Services Report,

· A narration of the Executive Summary during the preceding year,

· A Financial Overview which summarises Financial Performance, Financial Position and the cash flows generated and applied by Council,

· Financial benchmarks as per the Local Government Financial Prudence Regulations.

· Opportunities for Māori to contribute to decision making,

· The Audit Report (not included until the Annual Report is finalised),

· The Statement of Compliance.

Section 2 - Council activities

10 Included in here are details around Council’s main activities. It reports in some detail on the achievement of the performance measures and provides a summary of the funding received and applied in undertaking each activity. It also includes details about key projects under each activity group.

Section 3 - Council Controlled Organisations

11 This section provides information around Council Controlled Organisations (Milford Community Trust and the Southland Museum and Art Gallery).

Section 4 - Financial Information

12 This section outlines Council’s accounting policies, financial statements and notes to the financial statements.

Section 5 - other information

13 This includes information about the Mayor and Councillors, the structure of Council, Community Boards, other Subcommittees, the structure of the Executive Leadership Team, and a glossary.

Status of the Annual Report

14 At the date of this report the Annual Report is substantially complete. The principal matters outstanding include finalisation of the summary document, and any final changes as a result of the final audit review processes.

15 Audit New Zealand has completed the majority of its review of the Annual Report and summary document and the final audit director review is now in progress. This process may result in some changes to the document attached. Any made will be outlined at the meeting.

16 As with previous years, the summary document will be tabled and distributed at the meeting on 28 September 2016.

Performance Measures

17 Council’s 26 activities are broken down into 9 activity groups each with their own performance measures. There were 111 performance measures in total of which 86 were measured. Overall 61 were achieved and 23 were not achieved.

Financial results

18 These financial statements have been prepared in accordance with Tier 1 PBE accounting standards.

19 Explanations of the variance between actual results and budgeted results for 2015/2016 year can be found in note 33 of the Annual Report (page 145).

20 A summary of key financial information is set out below.

Statement of Comprehensive Revenue and Expense (page 105)

21 The Statement of Revenue and Expense records the revenue received and the expenditure incurred by Council. It also records changes in the value of Council’s assets. In summary, Council’s financial performance was as follows:

	Actual 15/16	Budget 15/16	Actual 14/15
Total Revenue	$67.2M	$69.6M	$66.5M
Total Expenditure	($65.8M)	($67.1M)	($62.4M)
Operating Surplus/(Deficit)	$1.4M	$2.5M	$4.1M
Gains on Assets at fair value	$1.3M	-	$0.3M
Gains on Assets	$0.4M	$21.1M	($8.7M)
Total Comprehensive Revenue and Expense	$3.1M	$23.6M	($4.3M)

22 Total revenue was under budget primarily as a result of lower than budgeted NZTA subsidy ($3.0M) and grants and subsidies, predominantly associated with AMCT ($1.8M). This was offset by increased forestry revenue ($1.4M) and increased forestry revaluation ($1.2M).

23 Total expenditure was under budget predominantly due to depreciation being $1.4M lower than expected ($21.6M budget vs $20.2M). This was as a result of the roading valuation at 30 June 2016 being significantly lower than expected due to the reduction in bitumen prices

24 Gains on Assets was also well under budget due to the significantly lower than expected asset roading revaluation.

Statement of Financial Position (page 107)

25 The Statement of Financial Position (also referred to as the Balance Sheet) records the assets Council owns, and how those assets are financed. Total Assets is what the council owns for example infrastructure assets, Total Liabilities are finance from third parties, for example accounts payable, and Total Equity is the net community assets (Total Assets less Total Liabilities). Key items in the Statement of Financial Position were:

	Actual 15/16	Budget 15/16	Actual 14/15
Total Assets	$1,400M	$1,478M	$1,398M
Total Liabilities	$11.0M	$12.2M	$11.7M
Total Equity	$1,389M	$1,466M	$1,386M

26 Total Assets are significantly under budget primarily due to property, plant and equipment being significantly less than budgeted by $85.1M. This is primarily as a result of the lower than budgeted revaluation of infrastructural assets and less capital works completed than anticipated.

Statement of Cash Flows (page 108)

27 The Statement of Cash Flows records the cash that Council received and disbursed. Broadly cash, under financial reporting rules is recorded in three separate categories:

• Operating cash flows - the cash flow related to day-to-day operating activities.

• Investing cash flows - the cash flow received from sale of assets and cash spent on capital assets.

• Financing cash flows - the cash flow received from any borrowings and the cash flow disbursed in repaying borrowings.

28 Overall, Council’s cash position decreased by $3.9M (rounded). In summary, the cash flows recorded within these categories are as follows:

Operating cash flows	Actual 15/16	Budget 15/16	Actual 14/15
Cash surplus/(deficit)	$23.2M	$24.5M	$22.3M

Investing cash flows	Actual 15/16	Budget 15/16	Actual 14/15
Cash surplus/(deficit)	($27.1M)	($34.1M)	($24.2M)

Financing cash flows	Actual 15/16	Budget 15/16	Actual 14/15
Cash surplus/(deficit)	($0.01M)	($0.02M)	($0.02M)

29 Operating cashflows were lower than budgeted. Income from NZTA reduced because Council was able to undertake the same level of works at a reduced total cost due to lower bitumen prices and a reduced programme. As funding from NZTA is a percentage of dollars spent, the lower overall spend meant less income received.

Issues

30 As at the date of this report there are no unresolved issues in relation to the Annual Report 2015/16. A small number of changes were requested by Audit NZ and these have been made.

Factors to Consider

Legal and Statutory Requirements

31 Section 98(1) of the Local Government Act 2002 requires the Council to prepare and adopt an Annual Report each financial year. Section 98(4) requires Council within one month after the adoption of the Annual Report to make publicly available the Annual Report plus a summary of the information contained in the Annual Report.

32 The Annual Report reports on Council’s performance against the first year of Council’s
10 Year Plan 2015-2025. The summary document summarises the key content of the Annual Report.

33 Section 98(3) of the Local Government Act 2002 requires the Annual Report to be adopted within four months of the end of the financial year to which it relates.
This makes 31 October the last day available to meet this timeframe.

Community Views

34 As the Annual Report is a report on activities undertaken during the year, no consultation is required. Community views were considered as part of the 10 Year Plan 2015-2025 consultation process. This document outlines the actual results compared to the budgeted results. The Annual Report and summary document will be available to the public via Council’s website as well as at Council offices.

Costs and Funding

35 The costs associated with the Annual Report include staff compilation time, audit costs and printing and distribution costs. These costs are included in the annual operating budgets and therefore not additional funding consideration is necessary.

36 The audit fee for the Annual Report 2015/2016 is $113,257 plus GST and disbursements ($2,101 or 1.9% increase on 2014/2015 fee).

Policy Implications

37 The Annual Report 2015/2016 reports to the public on Council’s performance against the first year of Council’s 10 Year Plan 2015-2025.

Analysis

Options Considered

38 Under the Local Government Act 2002, the Council must prepare and adopt an
Annual Report in respect of each financial year, no other options are available.

Analysis of Options

Option 1- Adopt the Annual Report and associated summary document for the year ended 30 June 2016.

Advantages

Disadvantages

· Legal compliance.

· The document provides information to the public on the performance to budget and against key performance indicators.

· There are no disadvantages.

Option 2 - Do not adopt the Annual Report 2015/2016 and summary document.

Advantages	Disadvantages
· There are no advantages of this option.	· Council will not be compliant with the legislation.

Assessment of Significance

39 The Annual Report 2015/2016 is considered significant under Council’s significance and engagement policy because the performance of Council is of wide community interest.

40 It is important to the public that Council meets both its financial and non-financial commitments to ensure it delivers its services efficiently and effectively. To do this the public relies on the information provided in the Annual Report to give it assurance that Council is undertaking its responsibilities and how well it is performing these.

41 Along with the processes and procedures Council undertakes to track and record the information provided in the Annual Report, to ensure that the public can rely on the information provided an independent review is undertaken by auditors (Audit New Zealand). In general the Audit New Zealand provides an opinion as to whether Council has complied with Generally Accepted Accounting Practice (GAAP) and that the annual report fairly reflects council’s financial position, results of operations and cashflows, and levels of service and reasons for any variance.

Recommended Option

42 The recommendation is that the Council adopt the Annual Report and associated summary document for the year ended 30 June 2016 (Option 1).

Next Steps

43 Once the Annual Report and summary document is adopted, and the signed representation letter has been provided to Audit NZ (draft attached at appendix C), the final audit opinion will be issued (draft attached at appendix B). The audit opinion will be incorporated into the full and summary annual report and an online and printed version will be made available to the public.

Attachments

a Draft Audit Opinion for the year ended 30 June 2016 ⇩

b Draft Letter of Representation for the year ended 30 June 2016 ⇩

c Final draft for adoption Annual Report 2015 2016 ⇩

Council

28 September 2016

Council

28 September 2016

sdclogo

Annual Plan Timetable 2017/2018

Record No: R/16/9/15556

Author: Katherine McDonald, Corporate Planning and Performance Advisor

Approved by: Steve Ruru, Chief Executive

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 The purpose of this report is to seek Council’s approval for the commencement of work on the 2017/2018 Annual Plan and its associated timetable which is indicative at this stage.

Executive Summary

2 The Local Government Act 2002 (LGA) Amendment Act 2014 introduced new requirements around Annual Plans which have the effect of making the document much more streamlined and focused on financial budgets.

3 Council is asked to review and approve these process changes and the indicative
Annual Plan timetable.

Recommendation

That the Council:

a) Receives the report titled “Annual Plan Timetable 2017/2018” dated 21 September 2016.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Agrees the Annual Plan 2017/2018 is likely to include significant or material differences from the content of the Long Term Plan 2015-2025 (LTP) and therefore Council intends undertaking public consultation before adopting the plan in accordance with section 95 (2A) of the Local Government Act 2002.

e) Approves the indicative timetable for the preparation of the Annual Plan 2017/2018.

Content

Background

4 The Local Government Act 2002 (LGA) Amendment Act 2014 introduced new requirements around Annual Plans which have the effect of making the document much more streamlined and focused on financial budgets.

5 Council must still prepare and adopt an Annual Plan for each financial year.

6 The purpose of an Annual Plan is to:

· Contain the proposed annual budget and Funding Impact Statement.

· Identify any variation from the financial statements and Funding Impact Statement included in the 10 Year Plan in respect of the year.

· Provide integrated decision making and co-ordination of the resources of the local authority.

· Contribute to the accountability of the local authority to the community.

7 Each Annual Plan adopted must contain appropriate references to the 10 Year Plan and set out the (financial) information required by Part 2 of Schedule 10 of the Act which includes:

· Forecast financial statements.

· Financial statements for the previous financial year.

· Funding Impact Statement (rating).

· Sample properties.

· Rating base information.

· Reserve funds.

8 This is a significant reduction in the level of requirements compared to what Council has previously included in its Annual Plan and is likely to result in a much smaller document.

9 Another change as a result of the amendments is that there is no longer a requirement to use the special consultation procedure and, if the Annual Plan does not include significant or material differences from the content of the 10 Year Plan, then there is no requirement to consult.

10 The intent of these legislative changes is to streamline annual planning processes where possible so that greater effort can be made every three years around the 10 Year Plan.

11 The more Council can align its planning cycles with this intent, the more it can potentially gain benefits around efficiencies and focus its resources on undertaking more effective community planning processes.

Issues

12 How do the LGA requirements apply to Council’s 2017/2018 Annual Plan?

Consultation

13 If Council prepares a document that follows the intent of the legislation it would be an extremely streamlined document.

14 Section 95(2A) LGA provides that the requirement to consult as set out in Section 95(2) “does not apply if the proposed Annual Plan does not include significant or material differences from the content of the Long Term Plan for the financial year to which the proposed Annual Plan relates”.

15 While the test for significance is set under Council’s Significance and Engagement Policy and requires a “major and long term effect” on the District or community, the test for “materiality” is set much lower. Materiality is defined in Section 95A(5) as follows:

16 “For the purposes of this section, a difference, variation, or departure is material if it could, itself or in conjunction with other differences, influence the decisions or assessment of those reading or responding to the consultation document”.

17 At this stage it is highly likely that any variations to the budgets affecting major projects or the cumulative effect of any carry-forwards will satisfy the test. With the information we have, there are likely to be variations to the 10 Year Plan budgets for the Catlins Road sealing project, Around the Mountains Cycle Trail and the Te Anau Wastewater Scheme. In addition, there could be carry forwards for some projects.

18 Given the low threshold for “materiality”, the indicative timetable has been prepared on the basis that consultation will be required.

Local estimates process

19 In addition to the amendments made to the 2016/2017 Annual Plan process, Council is further considering its internal budgeting and local estimates processes for the 2017/2018 Annual Plan. Historically, Council has allowed community boards, CDAs and individual business units to re-open the 10 Year Plan budgets on an annual basis. This has resulted in a complex process that occurs over a number of months.

20 Council staff are proposing a different process for the 2017/2018 Annual Plan as follows:

21 Budgets will be set at Year 3 of the 10 Year Plan, or updated estimates from the 2016/2017 Annual Plan where applicable. Budget managers will only be able to request changes where the difference is significant (ideally +/- $10,000 but will depend on the community and/or activity) and there is a good reason for change.

22 Community Engineers will be notified by email of their budgets and projects for Year 3, and will be required to discuss any potential significant changes to projects and/or budgets via informal workshops with their Community Boards (being held in late October/early November). Any changes are to be notified to Finance, and will be collated in a report to ELT for initial approval.

23 Community Engineers will be required to discuss any potential significant changes to projects and/or budgets via self-scheduled informal workshops with CDAs. Any changes are to be notified to Finance, and will be collated in a report to ELT for initial approval.

24 A formal report will be included in the Community Boards and CDAs agenda for approval at the meetings in late November/early December, confirming the final budgets and the rates (no further changes will be made at these meetings).

25 Finance staff will attend all Community Board workshops, but not inaugural meetings. Finance staff will attend CDA estimate meetings only if there are key issues for discussion.

26 District rates setting and forecast financial statement preparation commences immediately after the budgets close, resulting in the compilation of the draft Annual Plan being available for adoption and consultation significantly earlier than previous years.

27 Council is asked to approve these new processes.

Annual Plan project and timetable

28 The Project Manager for the 2017/2018 Annual Plan is Katherine McDonald, Corporate Planning and Performance Advisor.

29 An indicative timetable has been prepared based on the above assumptions and the key milestones are as follows:

Annual Plan Milestone (indicative)	Date
Community Boards Workshops which include confirmation of budgets	17 October – 11 November 2016
CDA Inaugural Meetings which include confirmation of budgets	21 November - 6 December 2016
Council workshop to discuss draft Annual Plan	7 December 2016
Adoption of consultation document	25 January 2017
Public consultation	20 February – 20 March 2017
Hearing of submissions	26-27 April 2017
Deliberation of submissions	17 May 2017
Council workshop to discuss final draft for feedback	Late May 2017
Adoption of Annual Plan	21 June 2017

30 Council is asked to review and approve the timetable.

Factors to Consider

Legal and Statutory Requirements

31 Pursuant to section 95 of the LGA, Council is required to prepare and adopt an Annual Plan for each financial year. Each Annual Plan must be adopted before the commencement of the financial year to which it relates.

Community Views

32 Council is required in the course of its decision-making process to give consideration to the views and preferences of persons likely to be affected by this matter. Council should therefore consider the views of their community boards and CDAs around the proposed budgeting processes.

Costs and Funding

33 Producing a streamlined version of the Annual Plan in accordance with the legislation and streamlining the budgeting processes are likely to result in savings for the organisation given the staff time that is normally dedicated to such activities.

Policy Implications

34 The impact on the Annual Plan is outlined in this report.

Analysis

35 Options Considered

1. Prepare the Annual Plan as per the timetable (indicative).

2. Amend the timetable with suggestions.

36 Analysis of Options

Option 1 - Prepare the Annual Plan as per the timetable (indicative).

Advantages

Disadvantages

· Staff can proceed with the work required for the document as planned.

· Provides a streamlined annual plan process.

· Nil

Option 2 - Amend the timetable.

Advantages	Disadvantages
· Nil	· Greater administrative complexity.

Assessment of Significance

37 The matter before Council is considered to have low significance.

Recommended Option

38 Council staff recommend Option 1 - Prepare the Annual Plan as per the timetable (indicative).

39 Next Steps

40 Council staff will communicate the changed process to staff and Community Boards and CDAs. Council staff will progress with the preparation of the draft Annual Plan.

Attachments

There are no attachments for this report.

Council

28 September 2016

sdclogo

Mediation of the Appeals on the Proposed Southland District Plan 2012 - Delegated Authority

Record No: R/16/9/14275

Author: Courtney Ellison, Senior Resource Management Planner - Policy

Approved by: Bruce Halligan, Group Manager Environmental Services

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 To grant delegated authority to the Team Leader - Resource Management to make decisions on settling the remainder of the appeals to the Environment Court on the Proposed Southland District Plan 2012, if possible through Environment Court mediation.

Executive Summary

2 Council received nine appeals to the Proposed District Plan 2012, four of which have been resolved through pre-mediation discussions with the appellants and interested parties. In March 2015, delegation was granted to the Manager Resource Management and Group Manager - Environment and Community to make decisions on behalf of Council on the resolution of appeals. Changes in staff and titles mean there is no longer a Manager - Resource Management, and therefore this report seeks delegation be granted to the Team Leader - Resource Management. The Group Manager - Environment and Community will continue to have delegation under the resolution of Council on 18 March 2015.

Recommendation

That the Council:

a) Receives the report titled “Mediation of the Appeals on the Proposed Southland District Plan 2012 - Delegated Authority” dated 16 September 2016.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Grants delegated authority to Team Leader - Resource Management to make decisions on behalf of Council on appeals to the Proposed Southland District Plan 2012.

Content

Background

3 Appeals on Resource Management Act decisions such as those made by the Resource Management Committee on behalf of Council are subject to rights of appeal to the Environment Court. Nine appeals were received on a relatively confined number of topics out of 289 submissions and 48 further submissions made on the Proposed Southland District Plan 2012.

4 Four of these appeals have been settled as a result of staff discussions with the appellants and interested parties and a consent order being lodged and subsequently granted by the Environment Court.

5 The remaining five appeals have not progressed as the Environment Court has put these on hold until the Biodiversity section of the Proposed Southland Regional Policy Statement (prepared by Environment Southland) has progressed. It is anticipated that mediation on the Proposed Southland District Plan appeals could progress late 2016 or in the first half of 2017.

Issues

6 Council needs to be represented at the Environment Court mediation by people who have the appropriate authority to settle appeals if an agreeable position is reached.

7 On 18 March 2015 Council gave delegation to the Manager - Resource Management and Group Manager - Environment and Community to make decisions on behalf of Council in mediation on the Proposed Southland District Council 2012.

8 The Manager - Resource Management position has recently been changed to a Team Leader - Resource Management and therefore the delegation previously granted by Council to the Manager - Resource Management is no longer valid. Therefore this report is seeking delegation be granted to the Team Leader - Resource Management.

Factors to Consider

Legal and Statutory Requirements

9 In order for Council to be appropriately represented at mediation in accordance with the 2014 practice note issued by the Environment Court it needs to delegate to a person or persons the authority to act on its behalf.

Community Views

10 Community views were sought through the submission process on the Proposed District Plan and it is a small number of those people/organisations that have appealed the decisions made to the Environment Court.

Costs and Funding

11 Indicative funding for this part of the plan making process has been included in the LTP and annual plans for a number of years.

Policy Implications

12 Any settlement may affect the policy framework in the District Plan and not entirely reflect the position that was initially reached in decisions by the hearing panel.

Analysis

Options Considered

13 Council must be represented in mediation proceedings and any subsequent Environment Court hearing. Therefore the only option to consider is to whom the delegation is made. It is considered that both the Team Leader – Resource Management and the Group Manager – Environment & Community should have delegation to ensure that someone is able to represent Council fully in mediation if there are unforeseen circumstances. However, it is anticipated that the Team Leader – Resource Management would be the primary representative of Council.

Assessment of Significance

14 The delegation of authority to settle appeals on the Proposed District Plan is not a decision that will have a major or long term effect on an individual town or the district, cultural impact, or level of service. Nor will it have a financial impact that will exceed the threshold of 10% of total revenue (exclusive of investment assets).

Recommended Option

15 The recommended option is to grant delegated authority to the Team Leader - Resource Management to make decisions on behalf of Council.

Next Steps

16 Staff will attend Environment Court mediation on the outstanding appeals once scheduled. The Resource Management Committee will be kept informed of progress on the mediation process.

Attachments

There are no attachments for this report.

Council

28 September 2016

sdclogo

Draft Reserves Management Policy

Record No: R/16/8/12517

Author: Kevin McNaught, Strategic Manager Property

Approved by: Ian Marshall, Group Manager Services and Assets

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 This report recommends the draft Reserves Management Policy for adoption by Council including suggested amendments as a result of submissions.

Executive Summary

2 The draft Reserves Management Policy was released for public consultation and one submission was received. An amended draft policy reflecting feedback from the submission is attached to this report and is recommended to Council for adoption.

Recommendation

That the Council:

a) Receives the report titled “Draft Reserves Management Policy” dated 16 September 2016.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Adopts the attached draft of the Reserves Management Policy.

Content

Background

3 The draft Reserves Management Policy was developed to provide a broad framework that would apply to all reserves, parks and open spaces.

4 The draft Reserves Management Policy would prevent the need for Council’s broad approach to be duplicated in each of its Reserve Management Plans.

5 Council released the draft Reserves Management Policy for public consultation and received one submission.

Issues

6 The submission received by Council (attached to this report) made a number of suggestions which were discussed by officers.

7 Two key amendments were made to the draft as a result of this submission. The draft Reserves Management Policy (attached to this report) has included the submitters wording relating to opportunity for an improvement in service arising from leases and licences to occupy reserves.

8 Section 5.19 of the draft has also been amended to show that vegetation management will occur in accordance with Reserve Management Plans.

9 Staff have also suggested an amendment to include Council’s position on election signs and hoardings. This is included in the attached draft in Section 5.17.

10 The submission also raised a number of other points which have been addressed in the table below:

Issue	Officer comments
Inclusion of a category of reserves for unformed roads.	Officers did not agree that unformed road should be classified as a class of reserve but considered that unformed road adjoining a reserve could be managed along with the reserve as appropriate.
Clarification of policy relating to horses.	Officers recommend that this is dealt with through Reserve Management Plans.
Inclusion of circus and fairground organisations.	Officers recommend that this is dealt with through the provisions of the Trading in Public Places Bylaw 2013.
Inclusion of a policy statement relating to the provision of playground equipment.	Officers did not support this suggestion, preferring a community based approach to the provision of playground equipment depending on the availability of funding and on community aspirations.
Specific criteria around the design and size of signs.	This may be partially addressed as part of ongoing work relating to Council branding.

Factors to Consider

Legal and Statutory Requirements

11 Southland District’s parks, reserves and open spaces are governed and regulated by a broad range of legislation, plans, policies and bylaws. The Reserves Act 1977 applies to land that is a reserve subject to that Act.

12 The draft Reserves Management Policy applies to all parks, reserves and open spaces controlled by Southland District Council regardless of whether they are classified as a reserve under the Reserves Act 1977. However, some specific exemptions may be provided in individual Reserve Management Plans.

13 Under Section 41 of the Reserves Act 1977, the Council is required to keep Reserve Management Plans under continuous review. Since Reserve Management Plans are aligned to the General Reserves Management Policy, this policy will also be kept under continuous review.

14 As well as aligning with other Southland District Council Plans and Policies, the draft Reserves Management Policy also adheres to Environment Southland’s Regional Plan and Ngāi Tahu ki Murihiku’s Natural Resource and Environmental Iwi Management Plan 2008 - e Tangi a Tauira - The Cry of the People.

15 The draft Policy makes reference to a number of existing Southland District Council bylaws. This ensures that the policy does not duplicate or contradict content in existing regulatory instruments.

Community Views

16 The draft Reserves Management Policy was released for consultation under section 82 of the Local Government Act 2002, as it was not assessed as significant.

17 One submission was received by Council. Council did, however receive a number of verbal queries regarding individual Reserve Management Plans.

Costs and Funding

18 There are no funding issues associated with the implementation of the draft Reserves Management Policy since the policy does not propose any significant changes in the practice of reserve management. However, it does consolidate statements about reserve management to prevent duplication of statements in Reserve Management Plans.

Policy Implications

19 The draft Reserve Management Policy would enable the review of Reserve Management Plans by providing a general policy framework that would not need to be duplicated in each document.

20 The draft Reserve Management Policy provides practical detail to support the Southland District Council Open Spaces Strategy.

Analysis

Options Considered

21 Council could:

· Option 1: Adopt the draft Reserves Management Policy with amendments to reflect submissions;

· Option 2: Not adopt the draft Reserves Management Policy with amendments to reflect submissions.

Analysis of Options

Option 1 – Adopt the draft Reserves Management Policy with amendments as required

Advantages

Disadvantages

· The draft Reserves Management Policy was supported by the submission received by Council.

· Having a broad framework for reserves management will prevent the need to duplicate content in Reserve Management Plans. This will streamline the documents and minimise the risk of inconsistency. It will also make the Reserve Management Plans more user friendly and locally focused.

· No significant disadvantages have been identified.

Option 2 – Not adopt the draft Reserves Management Policy with amendments to reflect submissions

Advantages	Disadvantages
· No significant disadvantages to this approach.	· If Council did not adopt a Reserve Management Policy the approach would need to be articulated in each Reserve Management Plan. This could lead to inconsistency and would make Reserve Management Plans less succinct.

Assessment of Significance

22 The draft Reserves Management Policy has not been assessed as significant. It does not propose substantial changes to the way in which Council would approach reserve management, nor does it impose significant restrictions on reserve users. The policy does however, clarify a proposed position on a number of issues and refer to a number of existing bylaws.

Recommended Option

23 It is recommended that the Council adopt the draft Reserves Management Policy with any amendments as required (Option 1).

Next Steps

24 The adoption of the draft Reserves Management Policy would allow Council officers to commence a gradual review of Reserve Management Plans. This would involve engagement with local communities.

Attachments

a Submission - Draft Reserves Management Policy ⇩

b Draft Reserves Management Policy ⇩

Council

28 September 2016

1.0 PURPOSE

This policy provides guidance on the administration, use, maintenance and development of reserves across the Southland District.

2.0 SCOPE

Policy statements in this document apply to all parks, reserves and open spaces controlled by Southland District Council unless specific exemption is provided in individual Reserve Management Plans.

3.0 DEFINITIONS

Term	Meaning
Activity Management Plan (AMP)	The Parks and Reserves Activity Management Plan is used to document Council’s management practices for parks and reserves over a 30 year period.
Council/the Council	Southland District Council as the land owner/ administering body of reserves.
Long Term Plan (LTP)	Southland District Council’s Long Term Plan. It is also referred to as the 10 Year Plan.
Parks, Reserves and Open Spaces	The term reserve refers to any parcel of land owned, administered and/or managed by Council, as a reserve, park, or open space.
Reserve Management Plan	Reserve Management Plans are a requirement of Section 41 of the Reserves Management Act 1977. Reserve Management Plans provide direction for the day-to-day management of reserves and details about factors that impact upon reserves. They also establish clear directions for future management and development.
Unmanned Aerial Vehicles/ UAVs	The term Unmanned Aerial Vehicle (UAV) is defined in the Southland District Council Unmanned Aerial Vehicles Policy. The term UAV covers all electric powered remote controlled model aircraft, including the type commonly referred to as ‘drones’ that are capable of vertical take-off and landing and small hand-launched gliders with less than a 1.5 metre wing span.

4.0 BACKGROUND

Southland District has 155 reserves, parks and open spaces, distributed over a land area of 30,400.94 km². Southland District’s reserves offer an extensive range of recreational opportunities and environmental characteristics.

Reserves owned, administered and/or managed by the Council have two distinct forms of legal status:

• land held subject to the Reserves Act 1977, and classified according to its principal purpose

• freehold land held by Council in fee simple title for parks purposes but not held under the Reserves Act.

The Reserves Act 1977 applies to all public land that has been vested or gazetted under the Act and specifies in general terms the purpose of each class of reserve. The Act also requires that each reserve be managed in accordance with its purpose and classification.

The terms parks, reserves and open spaces could also refer to parcels of land held by the Council for a wide variety of purposes akin to those described in the Reserves Act or the Local Government Act 2002. Not all of these parcels of land are protected under these Acts.

Southland District’s parks, reserves and open spaces are governed and regulated by a broad range of legislation, plans, policies and bylaws.

4.1 The Reserves Act

The Reserves Act 1977 applies to land that is gazetted as a reserve under the Act. While the term park(s) is used in this document, not all parks are reserves under the Reserves Act 1977. The management of these parks, however, will not differ in general terms from reserves as defined by the Reserves Act 1977.

Under Section 41 of the Reserves Act 1977, the Council is required to keep Reserve Management Plans under continuous review. Since Reserve Management Plans are aligned to the General Reserves Management Policy, this policy will also be kept under continuous review.

4.2 Local Context

As well as aligning with other Southland District Council Plans and Policies, the General Reserves Management Policy also adheres to Environment Southland’s Regional Plan and Ngāi Tahu ki Murihiku’s Natural Resource and Environmental Iwi Management Plan 2008 - e Tangi a Tauira - The Cry of the People.

5.0 POLICY STATEMENTS

5.1 Council Approval

Some activities outlined in this policy require specific approval or authorisation from the Council. The nature and context of the activity will determine how approval may be granted. For further information on how to obtain approval for specific activities, please contact Southland District Council.

5.2 General Access

Unless it is limited by the Reserves Act 1977, public access to reserves is a right.
The Council provides a level and standard of access to reserves that is appropriate to how each reserve is used.

Several factors may impact on public access to reserves. These include:

• leases or licences to occupy the reserve held by third parties

• safety issues

• activities that are occurring on a reserve for a period of time (eg planting or construction) or

• other restrictions under the Reserves Act 1977.

Clubs and organisations may gain exclusive use of a reserve for a specific period of time (eg during organised sports teams training or match occasions) with prior written approval from the Council.

From time to time, reserves may be closed to the public and a rental charged for the entry by an organisation staging a special event. This is subject to Section 53(1)(e) of the Reserves Act 1977 and requires the written approval of the Council.

5.3 Pedestrian Access

If required, pedestrian access will be controlled by the provision of walking tracks, footpaths and footbridges.

Where practical, access to reserves and reserve facilities will be inclusive and will consider universal design. Walking tracks will be maintained to the appropriate standard developed by the Department of Conservation and Standards New Zealand
as set out in the “New Zealand Handbook - Tracks and Outdoor Visitor Structures (SNZ HB 8630:2004)”.

5.4 Vehicle Access

Council may provide access roads and parking facilities within reserves. Motorised vehicles, other than maintenance vehicles, must only be used on roadways or parking areas unless prior written approval from the Council has been obtained.

Use of non-motorised vehicles (such as bicycles, skateboards and roller-blades) is permitted provided their use does not endanger other reserve users, cause damage to the reserve or make undue noise.

Non-motorised vehicles should not be used on walking tracks unless there is a sign indicating that their use is permitted.

5.5 Leases and Licences to Occupy

The Council may enter into formal lease agreements on reserve land when the land is available and there is a clear requirement for consistent use or service or a demonstrated opportunity for reliable improvement in service. Management responsibilities of the lessee will be clearly identified in the lease agreement.

5.6 Animals

Dog access to parks and reserves is determined by Southland District Council’s Dog Control Bylaw 2015. The Dog Control Bylaw 2015 also determines what degree of control is required on reserves where dogs are allowed.

Signage or information in the Reserve Management Plans will indicate if other animals are specifically excluded on any reserve.

Council may use grazing as a management tool on reserves. Grazing will comply with the Southland District Council Roading Bylaw and the Southland District Council Keeping of Animals, Poultry and Bees Bylaw.

5.7 Aircraft and Helicopter Landings

Landing an aeroplane, helicopter or any kind of flying machine in a Council reserve is not permitted without prior written approval from the Council.

Emergencies are an exception to this rule. Parties wishing to use any reserve for the purpose of landings during special events or for approved training exercises should contact Southland District Council for further advice.

5.8 Sale and Consumption of Alcohol

Consumption of alcohol in public spaces is regulated by legislation and the Alcohol Control Bylaw. The sale and supply of alcohol is regulated by the Sale and Supply of Alcohol Act 2012. Council permits special licences to be issued for the sale and supply of alcohol on reserves. Club licences may be issued to lease holders within reserves.

5.9 Trading

Trading in reserves must comply with Section 54 (1) (d) of the Reserves Act 1977 and may be subject to the Trading in Public Places Bylaw.

Section 54 (1) (d) of the Reserves Management Act 1977 allows trading to occur under leases and licences or for a temporary occupation of not more than six consecutive days. Trading activities must be necessary to enable the public to obtain the benefit and enjoyment of the reserve or for the convenience of persons using the reserve.

Applications to trade in reserves for a period of not more than six consecutive days will be administered under the Trading in Public Places Bylaw. Applications to trade in reserves for a longer time period will require a lease or licence. If trading is contemplated under the relevant Reserve Management Plan, applications will not be publicly notified. If trading is not contemplated under the relevant Reserve Management Plan, applications will be publicly notified and an opportunity for objections will be provided.

When making decisions regarding applications to trade on reserves, Council will consider a number of factors including the nature of trading, its impact on other reserve users and the effect on the reserve and existing infrastructure and facilities.

5.10 Fires

Lighting fires outside of a contained barbecue is not permitted on reserves unless there is prior written approval from the Council and the Southern Rural Fire Authority.

5.11 Fireworks Displays

Fireworks displays must:

• be approved by the local community board, community development area subcommittee or Council

• be undertaken only by people authorised by Council

• have a safety plan (including fire control) that has been approved by the Council

• have any approvals required under the Hazardous Substances and New Organisms Act

• have a fire permit issued by the Southern Rural Fire Authority if the display is during a Restricted Fire Season.

5.12 Buildings and Structures

The number of buildings and structures on reserves will be limited to a level that facilitates the safe and appropriate use of each reserve. Sharing facilities by more than one club or group is encouraged.

All new buildings or major changes to existing buildings and structures on reserves require approval from Council as the land owner of the reserve. Council will consider how buildings and structures will integrate with the natural environment of the reserve. The Building Act 2004 and the Southland District Plan may also include other requirements which must be met.

Buildings and structures will be maintained to a high standard and, where practical, designed to limit the opportunity for vandalism.

5.13 Boundaries and Fencing

The Council will reach an agreement with adjoining land owners on the type and standard of fencing and the contributions made by each party. On occasion, fencing may not be required. Required contributions may be financial or made through the provision of materials or labour.

There may be some situations where Council is not required to contribute to a boundary fence, for example if there is an existing fencing covenant.

Consideration will be given to the needs of the Council and the adjoining land owner. The characteristics of the reserve and the land use of adjoining neighbours will also influence Council’s decisions in relating to fencing. Decisions relating to fencing will be formalised through a fencing agreement.

Where it is impractical or undesirable to erect a fence on a reserve boundary, the fence may deviate from the legal boundary with the agreement of the adjoining land owner.

5.14 Toilets

A district-wide approach is taken to the number, location and standard of public toilets. Proposals for new toilets are considered against criteria which take into consideration requirements and availability across the District.

5.15 Play Equipment

All new playgrounds and replacement of playground equipment will comply with the Building Act 1991, the Resource Management Act 1991 and the New Zealand Safety Standards NZS 5828:2004 or subsequent updates.

The design and location of each playground will reflect the visual character of the reserve and consider environmental factors such as the orientation of the sun, shelter from the wind, visibility and disturbance to adjoining properties.

5.16 Signs and Interpretation

The placement of signs on reserves by non-Council organisations requires written approval from Council. Advertising signs are subject to the Southland District Plan.

Council will ensure that new or replacement signage identifies places that are of cultural significance in accordance with the Ngāi Tahu Claims Settlement Act 1998.

5.17 Electoral advertisements and hoardings

No election hoardings and signs are permitted to be placed or erected in Council controlled or owned parks, reserves and open spaces.

5.18 Pest Plant and Pest Animal Control

Pest plants and animals on Council reserves will be controlled in accordance with Environment Southland’s Regional Pest Management Strategy.

5.19 Litter Control and Dumping

Litter bins may be provided on reserves at strategic locations and in sufficient numbers to meet the reasonable demands of the users. These bins will be cleared regularly to prevent overfill and spillage.

Where there are no litter bins, reserve users are required to remove all litter from the reserve. The dumping of refuse including garden waste on reserves is an offence under the Litter Act 1979.

5.20 Landscaping, Amenity Planting and Areas of Native Vegetation

Landscaping and amenity planting and vegetation management will be undertaken on reserves in accordance with Reserves Management Plans.

Any new plantings on a reserve will consider visibility and safety. The retention of indigenous vegetation and threatened plants on reserves is a priority for the Council. Where possible, existing native vegetation on reserves shall be preserved and revegetated using locally sourced native species. The use of exotic species will be restricted to areas where exotic species predominate and/or the recreational use of the reserve would be enhanced by the use of exotics (eg for shade).

The removal or damage to any tree, shrub or plant material from within reserves is prohibited without the prior written approval of the Council.

5.21 Memorials

Memorials and plaques for individuals are only permitted in locations identified in Reserve Management Plans. All memorial plantings and commemorative plaques require written approval from the Council.

5.22 Monuments, Artwork and Sculptures

Monuments, art work and sculptures must have relevance to the reserve and enhance the natural surroundings. When determining whether the placement of a monument, artwork or sculpture is appropriate, the nature of the item, the proposed location, reserve use and reserve values will be considered.

Maintenance of monuments, artworks and sculptures will be undertaken by Council staff, or contractors, unless agreed otherwise at time of construction.

5.23 Outdoor Furniture

Outdoor furniture will be appropriate to the needs of reserve users. The nature of outdoor furniture, including materials and colour will be consistent with the natural surroundings. All outdoor furniture will be approved by the Council.

Maintenance of outdoor furniture will be undertaken by the Council staff or contractors.

5.24 Network Utility Infrastructure

Reserves are often crossed by network utility infrastructure, particularly power pylons. While most of these have been in place for many years, the Council will only consider new requests to place utility infrastructure in a reserve if all alternative options have been considered.

5.25 Lighting

Lighting may be provided for walkways and parking areas in reserves. Impacts on adjoining land owners are considered in relation to ground lighting or lighting outside buildings.

Where there are sports grounds in a reserve, lighting for night time training may be considered. Controls on lighting usage may be imposed by the Council.

6.0 ROLES AND RESPONSIBILITIES

Reserve users are responsible for ensuring that their use, activity, or any associated buildings or structures comply with relevant legislation, the Southland District Plan, Southland District Council Policies and Council Bylaws.

Some other documents which regulate activity on reserves are provided in the table below.

Activity	Regulated by
Camping	Freedom Camping Bylaw
Consumption of alcohol in public places	Alcohol Control Bylaw and Summary Offences
Sale and supply of alcohol	Sale and supply of Alcohol Act 2012
Dogs	Dog Control Bylaw and Dog Control Act 1996
Other animals	Keeping of Animals, Poultry and Bees Bylaw
Trading	Trading in Public Places Bylaw
Unmanned aerial vehicles	Unmanned Aerial Vehicle Policy

7.0 ASSOCIATED DOCUMENTS

This document should be considered in the context of the following associated documents:

Bylaws:

• Southland District Council Dog Control Bylaw

• Southland District Council Keeping of Animals, Poultry and Bees Bylaw

• Southland District Council Alcohol Control Bylaw

• Southland District Council Trading in Public Places Bylaw

• Southland District Council Animal Management Bylaw

• Southland District Council Freedom Camping Bylaw

• Southland District Council Roading Bylaw

Plans:

• Reserve Management Plans

• Southland District Plan

• Southland District Council Long Term Plan

• Parks and Reserves Activity Management Plan

• Southland District Council Animal Management Bylaw

Strategy:

• Southland District Council Open Spaces Strategy

Policies:

• Southland District Council Unmanned Aerial Vehicles Policy

• Southland District Council Smoke Free Open Spaces Policy

Acts:

• Reserves Act 1977

• Resource Management Act 1991

• Local Government Act 2002

• Sale and Supply of Alcohol Act 2012

• Building Act 2004

• Health Act 1956

• Fencing Act 1978

8.0 REFERENCES

• New Zealand Handbook - Tracks and Outdoor Visitor Structures
(SNZ HB 8630:2004)

• New Zealand Safety Standards NZS 5828:2004

9.0 REVISION RECORD

Date	Version	Revision Description
«Type Date»	«Version»	«Revision»
«Type Date»	«Version»	«Revision»
«Type Date»	«Version»	«Revision»

Council

28 September 2016

sdclogo

Alteration to Unbudgeted Expenditure Approval for Winton Memorial Hall

Record No: R/16/9/15328

Author: Kevin McNaught, Strategic Manager Property

Approved by: Ian Marshall, Group Manager Services and Assets

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 To consider a request to approve an alteration to the unbudgeted expenditure for the Winton Memorial Hall.

Executive Summary

2 Council at its meeting on 9 March approved an amendment to the unbudgeted expenditure for the Winton Memorial Hall project which at that stage was $860,000 plus GST.

3 Since then significant unbudgeted grant funding was made to the project which has resulted in the Winton Community Board amending the scope of the project to do additional work for which no approval has been given to this additional expenditure.

4 This report is to seek approval for that additional unbudgeted expenditure.

Recommendation

That the Council:

a) Receives the report titled “Alteration to Unbudgeted Expenditure Approval for Winton Memorial Hall” dated 19 September 2016.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Resolves to increase the unbudgeted expenditure for the Winton Memorial Hall upgrade from $451,913 as detailed in the carried forward budget table to $562,000 plus GST.

Content

Background

5 Council at its meeting in March 2016 approved of the unbudgeted expenditure for the Winton Memorial Hall upgrade, which at that stage was an $860,000 plus GST project.

6 The project was to be funded from numerous sources but the main ones being $50,000 from grants, $50,000 from the Winton Ward reserve and $751,590 from the Winton Community Board’s property reserve account.

7 Multiple grant applications were made for the project which resulted in the total grants allocated being $296,000 which is $246,000 above what was budged.

8 Because of this, the Winton Community Board has decided to alter the scope of the project to do additional work to primarily improve the end result of the whole project. For example these additions include new aluminium entrance doors, sanding and re surfacing the hall, supper room and stage floors, new tables and chairs, update the stage front, dimmable LED light fittings, hot water to the new toilets etc. As can be seen these are not structural alterations rather cosmetic to achieve a better overall end result.

Issues

9 While the additional grants monies are available, no approval exists to undertake this unbudgeted expenditure so approval of Council is sought.

Factors to Consider

Legal and Statutory Requirements

10 None identified.

Community Views

11 All additional work has been undertaken with the knowledge of, or at the request of the Winton Community Board.

Costs and Funding

12 Council recently approved a carry forward project amount of $451,913. This was based on the original $860,000 budget less the work in progress value of $408,000 as at 30 June.

13 The total estimate final construction costs are now $924,836.29 plus $25,000 for new furniture plus an additional allowance of $20,000 for project management costs. The total therefore is now calculated to be $969,836 plus GST, which is an additional $109,836 plus GST over the previous approved project budget.

14 It should be noted that as the project is primarily completed, these figures are seen as being as close as realistically possible to the final figures, albeit that a number of them are the project managers estimate of the variation as the finals have all not yet come to charge. It should also be noted that the additional costs are made up of the Board’s additional requirements (approximately $75,000) meeting legal standards and many small issues identified as the project progressed.

15 In total however this additional cost of $109,836 is significantly less than the additional grant funding of $246,000 which means a significantly lesser amount is needed from the Board’s Property reserve account.

Policy Implications

16 None identified.

Analysis

Options Considered

17 Approve the unbudgeted expenditure or decline it.

Analysis of Options

Option 1 - Approve expenditure

Advantages	Disadvantages
· Allows this significant community project to achieve a better result for the community.	· None identified.

Option 2 - Do not approve expenditure

Advantages

Disadvantages

· None identified.

· Not supporting the local Board’s decisions when the additional scope is being funded from grants allocated.

· Project will end up not as beneficial for the Community as it could be.

Assessment of Significance

18 Not significant.

Recommended Option

19 Option 1 - approve expenditure.

Next Steps

20 Update project budgets.

Attachments

There are no attachments for this report.

Council

28 September 2016

sdclogo

Enhancements to Council's Budgeting System

Record No: R/16/9/15503

Author: Anne Robson, Chief Financial Officer

Approved by: Steve Ruru, Chief Executive

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 To approve unbudgeted expenditure on the development of enhancements to Council’s in-house budgeting system to allow for the 2017-2018 Annual Plan to be undertaken at the same time as completing the 2018-2028 10 year plan (the plan).

Executive Summary

2 Council has an in-house built budgeting system (the system). This has been in existence for many years and has been “signed off” by the auditors for the purposes of collection of the financial data for the Council’s 10 years plans and annual plans since 2009.

3 Generally each year from 1 July to 30 June staff have either undertaken an annual plan or a 10 year plan. There has been no need to have the system available to complete a 10 year plan at the same time as an Annual Plan.

4 In planning for the 2018-2028 Long Term Plan, it was identified that undertaking the plan needed to take longer than one year to allow appropriate time for consideration of issues by Council and for Staff to undertake the necessary preparation work. The planning work undertaken also identified that Council staff needed to input financial data into the budgeting system earlier than the normal 1 July to 30 June period. To do this would require an enhancement to the budgeting system in use or for an alternative system to be considered.

5 After working through the different financial budgeting system options and requirements for the 2018-2028 10 year plan, Council staff are recommending that an enhancement be made to the current budgeting system and that this work be completed by Datacom.

Recommendation

That the Council:

a) Receives the report titled “Enhancements to Council's Budgeting System” dated 20 September 2016.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Approves unbudgeted expenditure of $34,020 (excl GST and allowing a 20% contingency) for the development of enhancements to Council’s in house built budgeting system to be funded from the District Operating Reserve.

e) Approves entering into a preferred supplier contract with Datacom for the service delivery of scoped enhancements to Councils current budgeting system.

f) Delegate authority to the Chief Executive to sign a service contract with Datacom.

g) Acknowledges that a preferred supplier contract is being approved for Datacom due to the significant in-house knowledge of the system by a staff member.

Content

Background

6 Council has an in-house built budgeting system (the system). This has been in existence for many years and has been “signed off” by the auditors for the purposes of delivery of the financial data for the Council’s 10 years plans and annual plans since 2009.

7 Up until 2003, Council produced its budgets in complex Excel spreadsheets. After producing the 2003 Long Term Plan in excel, Council staff went looking for a less risky option to manage the 10 years of financial information of the large quantity of business units, reserves and rates that Council has.

8 At the time there were few ‘off the shelf’ options available. As a result, it was decided that Council staff could develop a rudimentary system to collect financial data. This was built on over time and in 2009, as a result of a change in staff the current system was developed.

9 The system to date has been exceptionally reliable, and no enhancements or updates have been necessary since inception. However, Council is at risk as both staff who developed the system have now left and no support for the system is in place to maintain or enhance the system.

10 Generally each year from 1 July to 30 June staff have either undertaken an annual plan or a 10 year plan. There has been no need to have the system available to complete a 10 year plan at the same time as an Annual Plan.

11 In planning for the 2018-2028 Long Term Plan, it was identified that the process needed to be longer to allow appropriate time for consideration of issues by Council and for staff to undertake the necessary preparation work. The planning work undertaken also identified that Council staff needed to input financial data into the budgeting system earlier than the normal 1 July to 30 June period. To do this would require an enhancement to the budgeting system in use or for an alternative system to be considered.

12 After working through the different financial budgeting system options and requirements for the 2018-2028 10 year plan, Council staff are recommending that an enhancement be made to the current budgeting system and that this work be completed by Datacom.

What is being Proposed

13 The scope of the project is in three parts

a) To modify the system, adding in three additional years to all affected screens

b) To work with Council IT staff to connect the new years to the data warehouse and/or excel spreadsheets so data analysis can be undertaken

c) To modify current reports to allow the starting year to be selected (the reports need to reflect either the Annual Plan or the 10 year plan as the first year of the report)

d) Adding the ability to “lockdown” the first year of data entry. During the consultation phase of the Annual Plan, security is needed to ensure managers are unable to accidently overwrite data in the Annual Plan year whilst still being able to enter data for the plan.

14 Currently, the architect of Council’s system is employed by Datacom. Due to other work commitments he is not able to undertake any development enhancements. He is, however, available to provide direction and guidance to other Datacom employees who could undertake the work.

Issues

15 Normally, the 10 year plan is undertaken and delivered in a financial year commencing on the 1 July before adoption in June the following year.

16 As the requirement to undertake more strategies and integration of documents supporting the 10 year plan are introduced the need to expand the timeline to enable the identification and reporting to Council of issues and to enable robust discussion of these and subsequent backup reports to be developed the timetable for the delivery of the 10 year plan needs to expand beyond the current one year.

17 The report to Council on the 9 March 2016, detailing the proposed project plan and timetable identified that delivery of the plan was commencing at that stage, two years before adoption.

18 The project plan identified that by 30 June 2017, draft Activity Management plans would be presented to Council. By December 2017, the document would need to be complete for auditing in January 2018 and adoption by Council in February 2018.

19 These timelines mean that Council staff will be preparing the 2017-2018 Annual Plan at the same time as drafting the 2018-2028 10 year plan. The current budgeting system was only designed to undertake either an Annual Plan or a Long Term Plan.

20 The budgeting system currently can only hold 10 years of financial data at any time, by needing to do an Annual Plan and a 10 year plan one year earlier the system will need to have capacity to hold 11 years of data as a minimum.

Risks

21 Cost/Time Overruns – it can be difficult to forecast the amount of time involved with undertaking software enhancements. There is a risk that when you start to make adjustments it will require more time than expected. By using Datacom, it doesn’t change this however the architect of the system is now employed by them and will be able to provide assistance as required. The backup is to initiate a second instance of the system and “roll it” into the 2018-2028 period. This is not ideal as a number of manual changes will need to be made to the projected opening reserve balances given staff will be working on the 2017-18 Annual Plan and will be undertaking forecasting reviews of the 2016-17 financial year.

22 Resourcing - the proposed changes are the minimum required to get a working system. A commitment of resource both from the finance team and the IT team. Should the project go ahead it will be given priority over other work.

Factors to Consider

Legal and Statutory Requirements

23 Under section 93, of the Local Government Act 2002 (LGA) Council is required to have a long term plan at all times and under section 95 an annual plan for each financial year. Under Schedule 10 of the LGA, the long term plan must contain sources of funding and how the funds are going to be applied for each group of activities (Schedule 10(5)) and forecast financial statements (Schedule 10(12)).

24 The Long Term Plan must also contain a report from the Auditor General on the “quality of the information and assumptions underlying the forecast information provided in the plan” LGA Sec 94(1)(b).

Community Views

25 This has no direct impact on the community other than to ensure that the financial information in regards to Council’s budgets are robustly captured.

Costs and Funding

26 Based on the scoping undertaken, Datacom have estimated the cost at $28,350 (excl GST). Given the type of work being undertaken, Council should allow at this stage a contingency of 20%.

27 It is proposed to fund these works from Council’s District operating reserve.

Policy Implications

28 Councils Procurement Policy states that generally procurement decisions over $20,000 will be made on the basis of a competitive tender. It does however state that Council may consider alternative methods where it can be demonstrated to provide a better outcome in the long run (Procurement Policy 7.3).

29 In this instance given that the developer of Council’s budgeting system is now employed by Datacom, it is anticipated that his experience will enable the process to be undertaken more efficiently than obtaining the services of any other developer.

30 It is based on this that Council staff are recommending that the procurement of services for the enhancements be not by competitive tender but with the preferred supplier, Datacom.

Analysis

Options Considered

31 In considering how best to deliver the collection of financial data for the 2018-2028 10 year plan, the following options were considered

Analysis of Options

Option 1 – Contract Datacom to undertake the necessary development enhancements to Council’s current budgeting system

Advantages

Disadvantages

· Staff know the current system so there is a time saving from training in any other option.

· The developer of the system works for Datacom so his knowledge and assistance to the wider Datacom team potentially lessens the risk of an enhancement to our in-house built system.

· The auditors know the current system and they will review the system again given any changes but compared to other options this should be minimal.

· There is a risk that the enhancements are more complicated than anticipated and the timelines and/or cost exceed the current estimate.

· The review of IT systems may result in the purchase of a new budgeting application. It is most likely that any change would not occur for a few years given the time to review options and implement.

Option 2 – Delay the inputting of financial data into the budgeting system until 1 July 2017.

Advantages

Disadvantages

· No enhancement of the existing system would be necessary

· Considerable time saving for staff in not having to test the enhancements or creation of financial analysis tools

· The timelines for good financial analysis and discussion of issues and options would be restricted based on the current plan.

Option 3 – Use another option for storage of the necessary financial data.

Options considered here were the use of Excel or the purchase of an “off the shelf” package

Advantages

Disadvantages

· In using excel, existing in house knowledge could be used.

· In purchasing an off the shelf package, enhancements would be part of the annual cost.

· Using Excel would be risky as the size of the file would be prone to crashing and the opportunity for human error in creating and maintaining would be high

· At this late stage the purchase of any system would involve considerable time, from investigation of options to installing, setup and training. It is possible that any system purchased may be replaced as part of the core systems review that is about to commence.

· Council may not get the same functionality with a purchased system, as it originally has.

Assessment of Significance

32 This is not significant in terms of Council’s significance policy.

Recommended Option

33 Council Staff recommend Option 1, Contract Datacom to undertake the necessary development enhancements to Council’s current budgeting system

Next Steps

34 Further scope the project with Datacom, ensuring that what is being proposed, how it will be undertaken, when it will be undertaken and the resourcing required is appropriate.

Attachments

There are no attachments for this report.

Council

28 September 2016

sdclogo

Delegation of Authority to Chief Executive

Record No: R/16/8/13450

Author: Steve Ruru, Chief Executive

Approved by: Steve Ruru, Chief Executive

☒ Decision ☐ Recommendation ☐ Information

Purpose

1 This report requests Council to delegate authority to the Chief Executive, during the interim period between declaration of the election result and the first Council meeting, to exercise the responsibilities, duties and powers of Council.

Executive Summary

2 During the period between the Local Body Elections and the Inaugural Meeting of the new Council it may be necessary for decisions to be made. As an example, there may be a need for a decision to be made regarding an appeal to be lodged with the High Court following the decision from the Environment Court with respect to the Around the Mountains Cycle Trail.

3 It is felt that rather than delay this action and others that may arise, that the Chief Executive be given delegated the authority to make such decisions, albeit that he be required to consult with the Mayor elect.

Recommendation

That the Council:

a) Receives the report titled “Delegation of Authority to Chief Executive” dated 7 September 2016.

b) Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

d) Subject to the limitations set out in clause 32(1) of the Seventh Schedule to the Local Government Act 2002, the Council delegates all of its responsibilities, duties, and powers to the Chief Executive for the period from the day after the declaration of the election results until the swearing in of the new Council, subject to a requirement that the Chief Executive may only exercise this delegation after the following:

(a) consultation with the person elected to the position of Mayor,

(b) may only attend to those matters that cannot reasonably await the first meeting of the new Council and;

(c) shall be reported to the first meeting of the new Council; and

e) Agree that if any urgent decisions arise in this period requiring significant political input, then an extraordinary Council meeting will be called.

Content

Background

4 The Council will need to consider arrangements to ensure the effective and efficient conduct of the Council’s business during the period from the day after the declaration of the electoral result until the new Council is sworn in at the Inaugural meeting of the Council. This is likely to be for the period from 12 to 26 October 2016.

5 Clause 14 of Schedule 7 of the Local Government Act 2002 provides that a person newly elected to Council (this would include a re-elected person) may not act until they have made the necessary declaration at the inaugural Council meeting.

Issues

6 There is a need for the Council to determine whether the Council should give an interim delegation to the Chief Executive to enable any issues that might arise in the transition period between the old and new Councils to be addressed in a pragmatic way.

Factors to Consider

Legal and Statutory Requirements

7 Council is able under the Local Government Act 2002 to delegate this authority to the Chief Executive to cover the period outlined in the report.

Community Views

8 The community would expect Council to take a pragmatic approach to dealing with an issue such as this.

Costs and Funding

9 There are no additional costs associated with granting the delegation proposed.

Policy Implications

10 There are no policy implications attached to this report as the request is to cover a certain period of time and also is specific in the delegation required to cover a specific situation.

Analysis

Options Considered

11 The Council has the option of either delegating or not delegating to the Chief Executive.

Assessment of Options

12 The risks involved in delegating to the Chief Executive include the Council not agreeing with the decisions made and overturning decisions at a later date. The risks of not delegating would be the risk of the Council not being able to undertake urgent business that might arise during the period from the declaration of the election result until the first meeting of the new Council.

13 The limited time period and the fact that any decision by the Chief Executive is required to be made in consultation with the Mayor elect and that it would only be pressing matters that must be attended to does provide a degree of comfort to elected members that decisions will not be made unless required for the smooth running of the Council.

Assessment of Significance

14 A decision in accordance with the recommendations is not considered significant. It represents a pragmatic way of managing the transition period between the declaration of the election results and the first Council meeting.

Recommended Option

15 As per the recommendation, Council to delegate authority to the Chief Executive to exercise its duties and powers, other than those which cannot be delegated under the Act, during the interim period between declaration of the result of the elections and the first meeting of the new Council.

Next Steps

16 If accepted that Council record in the minutes of this meeting that the Chief Executive has been delegated the powers during the interim period post-election.

Attachments

There are no attachments for this report.

Mayor	Mayor Gary Tong
Deputy Mayor	Paul Duffy
Councillors	Lyall Bailey
	Stuart Baird
	Brian Dillon
	Rodney Dobson
	John Douglas
	Bruce Ford
	George Harpur
	Julie Keast
	Ebel Kremer
	Gavin Macpherson
	Neil Paterson

Chief Executive	Steve Ruru
Committee Advisor	Fiona Dunlop